Oil Prices Crash as Trump Signals Iran Deal Near

Global oil prices fell sharply on Monday while Asian stock markets climbed after signs emerged that the United States, Israel, and Iran could be moving closer to a peace agreement.

US President Donald Trump said over the weekend that a deal with Tehran had been “largely negotiated,” raising hopes that tensions in the Middle East could ease in the coming weeks.

Speaking on social media after calls with leaders from Saudi Arabia, Qatar, the United Arab Emirates, and Israel, Trump said discussions were progressing toward what he described as a “Memorandum of Understanding pertaining to PEACE.”

He added that final details of the agreement were still being discussed and would be announced soon.

The development triggered strong reactions across global markets.

By Monday morning in Asia, Brent crude had dropped by 5.5% to $97.90 per barrel, while US crude fell 5.8% to $90.99.

Investors reacted positively to expectations that the Strait of Hormuz, one of the world’s most important oil shipping routes, could reopen fully if tensions ease.

The strait has remained heavily disrupted since the conflict between the US, Israel, and Iran escalated in late February.

Nearly one-fifth of the world’s oil and liquefied natural gas exports normally pass through the narrow waterway.

Asian stock markets also rallied on the news.

Japan’s Nikkei 225 index rose 2.9% and crossed the 65,000 mark for the first time, boosted by hopes of improved energy supply and lower fuel costs.

Japan and South Korea have faced major pressure during the conflict because both countries depend heavily on oil and gas imports from the Gulf region.

Despite the optimism, Trump later cautioned negotiators against rushing the process.

In a post on Truth Social on Sunday, he wrote: “Both sides must take their time and get it right. There can be no mistakes!”

Iran also signalled cautious optimism.

Iranian foreign ministry spokesman Esmaeil Baqaei said talks between Tehran and Washington had shown signs of progress in recent days, although major issues still remained unresolved.

He also accused US officials of sending mixed messages during negotiations.

The conflict has caused heavy volatility in global energy markets since March, when Iran threatened to target ships using the Strait of Hormuz following attacks by the US and Israel.

Although oil prices dropped sharply on Monday, they remain significantly above pre-war levels. Before the conflict began, Brent crude traded around $70 per barrel.

Energy analysts say the market could remain unstable for some time even if a peace deal is reached.

Saul Kavonic, head of energy research at MST Financial, said there is now “light at the end of the tunnel” for oil markets.

However, he warned that supply pressures could continue for years due to damaged infrastructure, disrupted shipping routes, and depleted global oil reserves.